Warm plaudits to the Reserve Bank Governor Glenn Stevens for the bank’s new policy of glasnost.
It is a revolution at 65 Martin Place: there is to be a statement each month whatever the decision, the decision will be announced at 2.30pm on the day of the board meeting rather than at 9.30am the next day, and the minutes of each meeting are to be issued two weeks later. The sainted Harry Knight (1975-1982), among other former Governors, would be pursing his lips like crazy.
So the main thing that happened yesterday was the RBA flinging open its doors. Next question: what do we see there?
The decision to keep rates on hold was not a surprise, and nor were the reasons for it: that borrowing costs have already gone up and look like going up some more.
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“These developments will help contain private demand over the period ahead,” said Glenn Stevens in his statement.
Thanks for that, Governor. And the November minutes? Well, the most remarkable thing about them, in my view, was what they did not contain – the elephant in the room that was apparently studiously ignored throughout the meeting: the election.